Movers: Nokia, Garmin, Citigroup, UBS, Walgreen, Belo
Nokia (NOK) agrees to buy software maker Navteq (NVT), a firm with a $7.61 billion market capitalization that's a leader in electronic mapping, for $8.1 billion.
Garmin Ltd. (GRMN) falls after CIBC World says Garmin should have moved on Navteq first. If Navteq falls to Nokia, Garmin will have a lot less leverage over its most important supplier -- less power to negotiate price and less power to impact the map features Navteq develops. Down the road, CIBC says Garmin could have a tougher time managing its bill of materials and staying ahead in the differentiation curve.
Citigroup (C) estimates that it will report a decline in third quarter net income in the range of 60% from the prior-year quarter. The bank cites dislocations in the mortgage-backed securities and credit markets, and deterioration in the consumer credit environment.
UBS AG (UBS) plans to write down as much as $3.45 billion in fixed-income assets, including securities tied to subprime mortgages.
Walgreen (WAG) posts lower-than-expected fourth quarter EPS of $0.40, vs. $0.41 a year ago, as higher expenses and lower generic drug reimbursements offset 10.3% sales rose.
CVS Caremark (CVS) reaffirms $0.42-$0.44 third quarter and $1.86-$1.91 fiscal year 2007 EPS guidance. S&P cuts estimates, as it cuts margin expansion expectations to reflect concerns about potential negative impact from lower generic reimbursements.
Homebuilders get a lift after Citigroup reportedly upgrades Pulte Homes (PHM), D.R. Horton (DHI), Lennar (LEN), and Ryland (RYL) to buy from hold.
Belo Corp. (BLC) rises after the company says its Board of Directors has unanimously approved a plan to create separate television and newspaper businesses by spinning off the newspaper business (in early 2008) into a publicly-traded company called A. H. Belo Corporation.
Furniture Brands International (FBN) rises on unconfirmed Reuters report that Samson Holding Limited has approached the company about a possible business combination.
Acxiom Corp. (ACXM) announces it has reached an agreement to terminate previously announced acquisition of ACXM by Axio Holding, LLC, which controlled by Silver Lake and ValueAct Partners. The parties have signed settlement agreement whereby ACXM will receive $65 million in cash to terminate the merger agreement.
SXC Health Solutions (SXCI) announces a roughly 7% cut in its workforce as it realigns its operations to focus on its pharmacy benefits management services and transaction processing business segments. It cuts 2007 guidance to $0.51-$0.55 EPS (including severance costs) on revenue of $92-$93 million.
American States Water Co. (AWR) says its American States Utility Services, Inc. (ASUS) unit reached agreement to operate, maintain water, wastewater systems at Fort Bragg, N.C. The total award of this contract is estimated at more than $575 million over a 50-year period and is subject to periodic price re-determination adjustments, modifications.
Mothers Work (MWRK) says it was unable to reach terms on a renewal of its leased department relationship with Sears (SHLD).
Cal-Maine Foods (CALM) posts $0.76 first quarter EPS, vs. $0.23 loss a year ago, on 55% sales rise.